Stellantis plans to offer a $25,000 all-electric Jeep vehicle in the U.S. "very soon" to attract mainstream consumers amid slower-than-expected electric vehicle adoption, CEO Carlos Tavares said Wednesday.

Tavares disclosed few details about the upcoming vehicle, stating it will be priced around $25,000 in the U.S. to emulate Stellantis’ pricing of the Citroen e-C3 SUV, a low-cost model starting at 23,300 euros, or about $25,200, in Europe.

“In the same way we brought the 20,000 Euro Citroen e-C3, you will have a $25,000 Jeep very soon,” he said during a Bernstein investor conference. “We are using the same expertise because we are a global company and this is totally fluid across the engineering world of Stellantis.”

Stellantis currently offers an all-electric version of its Avenger SUV in Europe, starting at about 35,000 euros, or about $37,800, according to its website. The vehicle is not sold in the U.S., where the automaker has focused on plug-in hybrid electric Jeep vehicles.

Offering a new EV for around $25,000 has long been a target for automakers such as Stellantis, Tesla, and others. The importance of such a vehicle has grown more apparent as Chinese automakers such as BYD and Nio grow their sales of less-expensive EVs outside of China.

“If you ask me what is an affordable BEV, I would say 20,000 euros in Europe and $25,000 in the U.S.,” Tavares said. “So our job is to bring the safe, clean and affordable BEV to the U.S., $25,000. We’ll do it.”

Jeep’s first all-electric vehicle for the U.S. is expected to be the large Wagoneer S SUV, due later this year. The company is scheduled to officially reveal the vehicle Thursday in New York. A Jeep Wrangler-inspired off-road vehicle called the Recon is also expected as soon as this year.

Tavares said the company expects to achieve cost parity between its all-electric vehicles and traditional internal combustion engine vehicles in the next “three years, max” to better compete with the growing “China invasion” of affordable EVs.

“It’s a very challenging period, very chaotic, very Darwinian,” Tavares said regarding the Chinese competitors, EV transition, and potential consolidation of the automotive industry. “We are in the storm, and this storm is going to last a few years.”

Tavares’ comments come amid increasing geopolitical tensions surrounding China-made EVs in the U.S., Europe, and other regions. Many in and around the automotive industry fear the less-expensive, China-made vehicles will flood the markets, undercutting domestically-produced EVs.

Tavares also said tariffs such as those the U.S. is implementing against Chinese EVs may delay their expansion to the U.S. but will not completely stop it.

“Yes, time helps, but you cannot stop the competition,” Tavares said. “Putting you behind a protectionist bubble is not going to help you to be competitive. … If your strategy is to shrink and stay inside of the bubble, it will buy you time, but certainly it will cut your future.”

The Biden administration’s 100% tariff announced earlier this month, up from a current import tax of about 25%, covers EVs imported from China but could still leave room for the often-cheap Chinese models to undercut domestic prices and leaves loopholes for imports made by Chinese automakers in other countries, such as neighboring Mexico. It also does nothing to address current or future gas-powered vehicles imported from China to the U.S.

Stellantis’ strategic move to introduce a low-cost electric Jeep is seen as a critical step in competing not only with established automakers but also with the emerging threat of Chinese electric vehicle manufacturers. The company’s focus on affordability, safety, and clean energy aligns with global trends towards sustainable transportation and represents a significant shift in the market dynamics of the automotive industry.

Moreover, the introduction of a $25,000 Jeep underscores Stellantis' commitment to making electric vehicles accessible to a broader audience. This move is expected to accelerate the adoption of electric vehicles by providing a more affordable option for consumers who may have been deterred by higher prices. As the automotive landscape continues to evolve, Stellantis aims to lead the charge in creating a more inclusive and sustainable future for transportation.

Additionally, the company is investing in innovative technologies and manufacturing processes to reduce production costs and improve the efficiency of electric vehicles. This includes leveraging advanced battery technologies, optimizing supply chains, and enhancing vehicle design to meet the needs of modern consumers. By doing so, Stellantis hopes to offer a compelling value proposition that combines affordability with cutting-edge features and environmental sustainability.

Stellantis is also exploring strategic partnerships and collaborations with technology firms and other industry players to accelerate the development and deployment of electric vehicles. These efforts are aimed at fostering innovation, reducing costs, and expanding the availability of electric vehicles in various markets globally.

As Stellantis prepares to launch the $25,000 Jeep, it will focus on robust marketing and consumer education campaigns to raise awareness about the benefits of electric vehicles. These campaigns will highlight the cost savings, environmental benefits, and advanced features of electric vehicles, aiming to dispel common misconceptions and encourage widespread adoption.

In conclusion, Stellantis' initiative to introduce an affordable all-electric Jeep marks a pivotal moment in the automotive industry. It reflects the company's commitment to innovation, sustainability, and consumer accessibility, positioning Stellantis as a leader in the transition towards a more sustainable and inclusive future for transportation.